KKR Moves Into Mutual Funds

Chuck Jaffe joins Markets Hub to discuss why private-equity firm KKR & Co. is making the leap into the world of mutual funds.

This transcript has been automatically generated and may not be 100% accurate.

... I ... I'm in the wall ... he still MarketBeat ... acutely in the lineup by close of neutral funds ... shock ... isn't very interesting that you are the little guy that will be a barbarian to give ... me the chance for you ... well there may be I mean the firm that everybody wanted to invest in ... backing the nineteen eighties was Kohlberg Kravis Roberts in a war by kings they were the barbarians at the gate ... and they never cared about the little guy and now they're opening one traditional one open end mutual fund and one closed end fund an Obama when ... he got a few bucks you can go on to Rach ... so is this kind of Cunniff Tanzania to be offered him I for one thing ... I can get into this mutual funds ... the new one today there are alternative strategies what you can go and buy them and I think some financial advisors will mean the real question becomes ... why these guys don't and ... he wanted to weaken right you're not gonna be cheap funds ... and as great as ... Kohlberg Kravis Roberts is a great has ... been the legend is that we are investing in mutual funds in a run on before ... and ... there's plenty of fund firms have gone into the fund world and proven themselves to be horribly ill them into you really expect is an average investor that you're going to get ... the KKR kind of thing ... from a mutual fund ... realistic exit that ... they're selling yet that ... that's where the name implies now ... if they didn't wanna do it they might've done while Blackstone another big buyout firm did when they started a closed end fund at least called the Apollo fun ... so why is it that hates the Blackstone fun right I know but the big buyout firm that might have heard ... in KKR his case well they're trading on the name ... and ... they've gone into alternative strategies with are basically saying ... we are looking at distressed companies ... so I think the expectation is ... better than KKR to looking distressed ... company and ... mind you they may be great ... but you sure as heck don't know that right now ... it's up and doing this because we all know that in the MNA activity is down on Wall Street lot appeal is not as much deal making ... are they doing that because they really does need to find a new ad new revenue or why are they doing this ... if this works for them this is their equivalent of an annuity ... I mean that's really what is it a weekend gets the money to weaken put into some deals ... and raise capital without having to go to the people right now dont wanna be involved in this stuff ... we can get the little guys and ... I know it'll generate a nice hefty ... expense ratio which if they get assets and that today yet ... but if they get assets that pays them in perpetuity ... I the only reason I can think of when your core business stinks ... and if you're in the body of world right now your core business does stink ... well you gotta reach out and do something else that's what Blackstone OpenIPO ... I think